Oil Companies Settle Drinking-Water Lawsuit
To settle claims that leaks from gasoline storage tanks may taint drinking water, units of Royal/Dutch Shell Group, BP and other companies tentatively agreed to spend $91.7 million to install double-walled tanks and pipelines at service stations and to treat contamination, according to documents filed in San Francisco Superior Court.
The settlement would end a 5-year-old lawsuit that sought to force the companies to clean up 1,000 tanks around the state. The companies said the settlement involved no admission of wrongdoing or liability.
Communities for a Better Environment sued the oil firms under California’s Safe Drinking Water and Toxic Enforcement Act, known as Proposition 65. The suit said the oil companies were discharging gasoline containing benzene and toluene into potential drinking-water supply sources.
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